Are you thinking of buying a house but are confused about how a VA home loan works? In this episode of Hella Smart, I’m going to give you a simple explanation as to why using a VA home loan is a HELLA smart move if you qualify. I’ll explain the qualifications and terms so you can see if this is a loan program you can take advantage of.
Understanding The VA Loan
A VA home loan is a mortgage that’s funded by private lenders and insured by the Federal Department of Veterans Affairs. This gives the VA home loan a few advantages.
First, these types of loans are more forgiving on credit scores, credit history, and income requirements compared to other home loans. There are no monthly mortgage insurance payments. Also, VA home loans usually have lower interest rates compared to other loan programs. With all of these advantages, how do you know if you qualify?
First, you must be a current service member or veteran who qualifies based on the character of your service and your amount of time in service. Also, the surviving spouse of a deceased service member or veteran may be eligible in certain situations.
Second, to buy a home with your VA home loan benefit, it has to be the principal home that you’re going to live in.
Third, you must financially qualify based on your credit, income, debt payments, and financial assets.
A Case Study
Let me give you an example of a home loan I funded where I helped the service member take advantage of his VA home loan benefits. When I met James, he was an Army Staff Sergeant and was transferred to an assignment in San Francisco. He planned to buy a home across The Bay in Contra Costa County.
My team talked to him about what he was looking for in a home. Next, we collected paperwork like his bank statements, credit report, leave and earning statement, a statement of service letter from his CO, and his Certificate of Eligibility from the VA.
The VA Certificate Of Eligibility, or COE, is your golden ticket when using a VA home loan. You can’t get a VA home loan without one. The VA Certificate Of Eligibility shows that you’re eligible to use a VA home loan and details the maximum VA home loan size you can use if you financially qualify.
My team verified James’s information and we Pre-Approved him for the price range he was looking for. After finding a home and getting his offer accepted, James was able to finish his purchase, contract, and move in—all in less than a month.
Is A VA Home Loan Right For You?
If you’re interested in learning more about VA Home Loans, I’d be happy to put together a step-by-step outline for you to show you how it works. We’ll go deep into your goals, address any current issues you need help with, and come up with a plan that’s tailored to your needs. Whether it’s figuring out how to use your VA home loan now or in the future, learning about all your home finance options is how you make a Hella Smart and disciplined home purchase.
So make sure to reach out to me and I’ll be happy to help. Don’t forget to also subscribe to my channel so you never miss an episode of Hella Smart. Stay tuned to see what real estate tips I feature next!